Strategic Response and Performance of Commercial Banks in Kenya
Abstract
Strategic response can be classified as the skill of formulating, evaluating, and
implementing certain critical choices that allow an organization to remain justifiable as
well as accomplish its goals while in a chaotic environment. It includes a detailed
description of the company's goals, procedures, and strategies. The success of strategic
response success is heavily dependent on the business environment. This includes the
sociological, political, environmental, social and economic contexts of an organization.
The rate of success of a strategy response is also determined internally, by the resources
available to a business, the overall assets assigned to implementing strategies, personnel
capacity, organizational processes and technologies. “The goal of this research was to
determine how strategic responses impact performance of Kenyan banks guided by the
objectives; to determine the impact of strategic response on organization performance, to
study the effect of strategic crisis management on organization performance, and to
establish the effect of strategic leadership on performance. The environmental
dependency theory and the resource based view theory guided the investigation. A
descriptive research design was used to this end. The 38 licensed commercial banks
served as both the population and the sample for the study.” This research relied on
primary data collected through questionnaires. Google forms were made use of in the
questionnaire administration. “The data obtained was converted into quantitative format
to be analyzed using spss. This generated descriptive statistics which included mean and
standard deviation and inferential statistics which included both correlation analysis and
multiple linear regression. From the study, a substantial positive relation between
strategic innovation, strategic crisis management, and strategic leadership and
organizational performance was found among commercial banks.” Regression analysis
revealed that 60.2% variations in organization performance among the banks were linked
to the three variables selected in this study. In conclusion, strategic innovation, strategic
crisis management and strategic leadership are responsible for improved organizational
performance. Based on the findings, strategic leadership had the greatest influence on
performance followed by strategic innovation and strategic crisis management had the
least influence. As a result, it is recommended that commercial bank managers and
owners concentrate on strategic responses, as this improves overall performance
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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